Credit Researcher - South Asia, Bondcritic

Shrey Bhandari

Credit Researcher - South Asia

Asian Fixed Income/Frontier Market Research

Bondcritic

Bondcritic, established in 2009, is designed to be an independent credit research voice that helps investors gain insights and unbiased analyses on Asian fixed income market. Our mission is to discover deep-value Asian high-yield and distressed bonds with a bottom-up approach, together with the help of our proprietary ESG (Environmental, Social Development, and Governance) model. At the same time, we focus on bringing investment cases of unrated and unloved issuers to the general public.

Credit

Il&Fs Engineering & Construction / Credit

<p>We chose to study Infrastructure Leasing &amp; Financial Services Ltd (ILFS)’s default case. The company is engaged in infrastructure development and financing activities in India. Since the start of June 2018, the company has defaulted on a series of payments, resulting in rating downgrades. More recently, in January 2019, ILFS’ affiliated company Jharkhand Road Projects Implementation Company failed to pay INR760m due to its lenders. This resulted in CRISIL downgrading the bonds to D, which amounts to junk status. ILFS is one of the most important companies in the Indian infrastructure space and this default indicates signs of worry for investors.</p>

We chose to study Infrastructure Leasing &amp; Financial Services Ltd (ILFS)’s default case. The company is engaged in infrastructure development and financing activities in India. Since the start of June 2018, the company has defaulted on a series of payments, resulting in rating downgrades. More recently, in January 2019, ILFS’ affiliated company Jharkhand Road Projects Implementation Company failed to pay INR760m due to its lenders. This resulted in CRISIL downgrading the bonds to D, which amounts to junk status. ILFS is one of the most important companies in the Indian infrastructure space and this default indicates signs of worry for investors.

­­Asian Credit Monitor: Infrastructure Leasing & Financial Services – INR Bond Default

India

Atlanta Limited is in the business of construction, realty, infrastructure, and mining. The Company's main focus is on engineering, procurement and construction, mining, and real estate.

A2Z Infra Engineering Limited is an engineering, procurement and construction ("EPC") company. The Company provides services to the power transmission and distribution sector with a focus primarily on the distribution segment.

Supreme Infrastructure India Limited is a medium sized construction company. The Company's services include construction of roads, highways, and widening of highways, as well as operates a ready mix concrete plant, an asphalt plant, and a crushing plant.

Coromandel Engineering Company Ltd. offers construction services.  The Company constructs residential, corporate, hotel, and other buildings.

Sadbhav Engineering Limited provides construction services, with a focus on irrigation, roads and highways, and mining operations.  The Company constructs earthen dams and canals, rehabilitates and upgrades roads, and excavates overburden of mineral properties.

SKIL Infrastructure Limited is an infrastructure development company. The Company specializes in ports, tourism infrastructure, lifestyle city, and urban infrastructure.

Madhucon Projects Limited is an engineering construction company. The Company is involved in projects that include highway construction, infrastructure projects, and construction  of Hydel and Thermal power projects.

Gayatri Projects Ltd. offers construction services.  The Company builds infrastructure projects such as dams, highways, bridges, canals, aqueducts, and ports.

McNally Bharat Engineering Company Limited provides a wide range of engineering services. The Company is specialized in executing complex industrial projects of various nature involving design, engineering, procurement, manufacturing, testing, supply, transportation, civil works, erection, and commissioning on turnkey basis.

Shristi Infrastructure Development Corporation Ltd. is a civil engineering and infrastructure development company in India. It specializes in the development of various infrastructure projects, including roads, highways, hydro-electric power plants, integrated townships, health and wellness centers, transport terminals, residential condominiums and villas, commercial complexes, and malls.

WLS Holdings Limited, through its subsidiaries, provides scaffolding for public housing, private residential and commercial buildings construction, repairs, maintenance and renovation works, and landslip preventive and remedial works to slopes and retaining walls.  The Company also manufactures plastic ties for its own use.

Protasco Berhad is an investment holding company.  The Company, through its subsidiaries, provides road construction, road rehabilitation, road maintenance, and engineering services.  Protasco manufactures road construction materials and provides technical training and higher education.

CNQC International Holdings Ltd is a contractor in the foundation industry and machinery leasing business.

Pylon PCL is a group of engineers that focuses on foundation works. The Company's products and services include bored piles, jet grouting, and diaphragm walls. Pylon provides services to both the private and public sectors and to both main contractors and project owners.

SEEDHEIWA Co., Ltd. designs, constructs, and manages real estate properties. The Company also provides consultation services on taxation, financing, and maintenance of real estate properties to landowners.  Seed as well provides brokerage services on sales and leasing of buildings.

KANDA TSUSHINKI CO., LTD. is a telecommunication facility engineering firm. The Company offers facility installation service to non-NTT firms.  Kanda Tsushinki also operates other businesses such as communication systems, office automation product sales, computer systems, and software development.

SONEC CORPORATION constructs residential, institutional, and commercial buildings.  The Company also performs civil engineering works for water, sewage, and road projects.  Additionally, Sonec operates freight trucking businesses for chemicals and industrial waste.

Nam Hwa Construction Co., Ltd., a general construction company, provides civil engineering, architectural, industrial, and electrical engineering services. The Company constructs roadway, dams, ports, expressway, apartment complexes, and cultural facilities.

The Kaneshita Construction Co., Ltd. is a general contractor based in Kinki region.  The Company performs road paving and asphalt recycling.  Kaneshita also constructs a variety of infrastructure and buildings.  Additionally, The Company operates green planting and industrial waste disposal businesses.

TRC Construction PCL offers engineering and construction services.  The Company serves the oil and gas, petrochemical, and pharmaceutical industries.

IL&FS Engineering and Construction Company Ltd. offers infrastructure development and contracting services. The Company builds irrigation projects, roads and bridges, and buildings infrastructure.

Il&Fs Engineering & Construction (IECC IN)

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­­Asian Credit Monitor: Infrastructure Leasing & Financial Services – INR Bond Default

We chose to study Infrastructure Leasing & Financial Services Ltd (ILFS)’s default case. The company is engaged in infrastructure development...

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Asian Credit Monitor: Infrastructure Leasing & Financial Services – INR Bond Default